KUALA LUMPUR: OCBC Bank (M) Bhd and its subsidiaries (OCBC Malaysia) has recorded a 17 per cent rise in net profit to RM954 million for the financial year ended Dec 31,2019 (FY2019).
In a statement today, the bank said that this was the highest net profit it had ever recorded; underpinned by a strong nine per cent growth in total income, mainly due to higher gains on disposal of financial investments along with net interest income.
"This is despite the 25 basis points cut in the Overnight Policy Rate and, correspondingly, the bank’s base and base lending/financing rates in 2019, ” it said.
After deducting proposed dividends, OCBC Malaysia remained well capitalised with Common Equity Tier 1 capital ratio of 14.38 per cent, Tier 1 capital ratio of 15.26 per cent and total capital ratio of 17.83 per cent --sufficient to withstand the challenges of the COVID-19 pandemic, it said.
Chief executive officer Datuk Ong Eng Bin said the bank would continue to support its customers through the pandemic via the combined strength of its conventional and Islamic banking franchise as well as in the areas of managing risks, maximising collaboration within its business units and growing its wealth products platform.
"We continue to invest in digital capabilities to widen our offerings and improve customer experience to meet the surge in demand for online services.
"This disruption in customer banking behaviour will likely have a lasting impact as customers become more accustomed to banking from the comforts of their homes and workplaces, ” he said.
Ong added that the bank’s corporate and commercial banking segment will continue to focus on supporting the customers’ local and regional business growth by matching their business expansion requirements with OCBC group’s strong regional network.
Concurrently, it will also help businesses facing financial difficulties due to the impact from the COVID-19 pandemic and the movement control order.
Moving forward, Ong said OCBC Al-Amin plans to expand its wealth management business and build its financing book for corporates and small and medium-sized enterprises, paying particular attention to value-based intermediation, especially in the areas of sustainable financing as part of its long-term growth strategy.
"On the corporate social responsibility front, we will ride on the momentum created by our various division and branch level efforts in the last few years to fulfil the social needs of the communities where we operate, maintaining our position as a bank that cares, ” he said.
Formed in 1932, OCBC Bank is the longest established Singapore bank, and it is now the second largest financial services group in Southeast Asia by assets. - Bernama